SNOW Dividend Type Payments

Snowflake Inc. Class A dividend

Although SNOW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Snowflake Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Snowflake Inc. Class A (SNOW)
Bid Ask Last Change Volume P/E Market Cap
158.50 159.50 158.96 +0.56 2.0M - 106B

SNOW Dividend-Like Income Using Covered Calls

With SNOW at 158.96, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 4.77 1.3
5% 7.95 2.2
10% 15.90 4.4

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On SNOW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 160.00 3.80 5 76.0 0.50 (0.3%)
Jun 6 160.00 12.35 40 30.9 0.50 (0.3%)
5% Yield On SNOW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 160.00 3.80 5 76.0 0.50 (0.3%)
Jun 6 160.00 12.35 40 30.9 0.50 (0.3%)
10% Yield On SNOW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 160.00 3.80 5 76.0 0.50 (0.3%)
Jun 6 160.00 12.35 40 30.9 0.50 (0.3%)

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